MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, August 18, 1999 Odd Lots, August 17, 1999 The growing affluent From The Los Angeles Times The high-net-worth market segment is not only the more profitable end of the mutual fund business but it is also growing much faster than the population as a whole. The total U.S. population is growing about 1% a year,but the number of "affluent" households is growing 4% to 6% a year, says William White, practice leader for the Spectrem Group's affluent market consulting group. The affluent account for just 16% of total U.S. households. But their investment holdings represent 70% to 75% of all financial assets, White said. Funds use perks to attract wealth From The Los Angeles Times Fund companies are offering clients more personal services and perks to attract wealthy clients. T. Rowe Price is offering investors their own personal service representative. At Neuberger Berman, an individual advisor will help an investor select an entire portfolio of funds. At Fidelity Investments, they'll even arrange to waive the $75 fee on an American Express gold card. The catch in each cases is that the firm is requiring an investment of $100,000, sometimes more. Too Big From The New York Post The Post reports how on Fidelity Investments and Vanguard Group are just getting too big for their britches. Magellan was at $94.6 billion at the end of July, after having crossed the $100 billion mark on July 15. The problem is the large-cap holdings that the manager is forced to buy large cap holdings. Smaller-cap holdings are virtually ignored by Magellan, since their gains make no difference to the giant fund's overall returns. Fidelity watchers say the fund family should close Magellan and start over with new funds. In regards to Vanguard's, Jack Bogle, he can't be overly ecstatic about the funds growth spurt after being asked to leave. Banks should start wrapping From The Wall Street Journal Some banks are missing out on an opportunity by staying out of the mutual fund wrap programs, a new study found. Assets in mutual fund wrap programs are on track to grow by 28% this year, which would put them over the $100 billion mark by year end, Cerulli Associates said in a study. The research firm calculates total assets in mutual fund wrap assets stood at $82.5 billion at the end of the first quarter of this year. Fidelity Investments is the largest mutual fund company in the wrap business. Banks' total share of the mutual fund wrap marketplace was 4.6%, or $3.8 billion in total assets, at the end of the first quarter. Lipper won't change old categories but just add some From The Wall Street Journal Lipper Inc. will retain its old categories for fund companies wanting to use them for advertising purposes, despite a planned overhaul in the way it sorts and ranks mutual funds. The decision means fund companies will more likely be touting their Lipper ratings for advertising and marketing reasons. Once the new categories are made, more than 25 categories will exist for stock funds. The new 18 stock-fund categories will divide funds based on holdings and risk profile. The old system of eight categories divides funds based on their objectives, according to their prospectuses. Fuzzy feelings about Vanguard turn sour From The Wall Street Journal As news spread about Vanguard's founder John Bogle leaving, many wonder about the consequences within the company. The fact that the board is not making an exception in Bogle's case may leave a sour taste in the mouths of fund investors and company employees. One investor said she will never feel the same way about the company again after forcing out the man that has done more for individual investors than any other single person. Printed from: MFWire.com/story.asp?s=24539 Copyright 1999, InvestmentWires, Inc. All Rights Reserved |